Section 1825. Local development corporations

To be eligible for loans from
  the authority, a local development corporation shall meet the  following
  requirements in addition to any others imposed by the provisions of this
  title:
    1.  The  corporation shall (a) be incorporated or reincorporated under
  article nineteen of the membership corporations law,  or  under  section
  fourteen hundred eleven of the not-for-profit corporation law, or (b) be
  incorporated  under  article  two of the membership corporations law, or
  under article four of the not-for-profit corporation law, in addition to
  other purposes, to construct new industrial or manufacturing  plants  or
  new  research  and  development  buildings  and  acquire  machinery  and
  equipment deemed related thereto or acquire, rehabilitate,  and  improve
  for use by others, industrial or manufacturing plants in the area of the
  state  in  which  an  assisted  project  is  to  be  located,  to assist
  financially  in  such  construction,  acquisition,  rehabilitation   and
  improvement  and  to  maintain  such plants, buildings and equipment for
  others, and may also be authorized to study and  promote,  alone  or  in
  concert  with  local officials and interested local groups, the economic
  growth and business prosperity of the area and  the  solution  of  other
  civic  problems  of  the  region  which  includes such areas, and (c) if
  incorporated or reincorporated under the  membership  corporations  law,
  have  complied  with the requirements of section one hundred thirteen of
  the not-for-profit corporation law.
    2. The corporation shall have no member or employee thereof  who  owns
  beneficially more than five per cent of the capital stock of the project
  occupant,  or  of  the business enterprise described in section eighteen
  hundred twenty-seven and if any member or employee  of  the  corporation
  has  any  material  financial  interest  in,  is  employed  by,  or is a
  consultant to any such project occupant or business  enterprise  or  any
  other  business enterprise including a bank or other lending institution
  having a material financial relationship with such project  occupant  or
  business  enterprise,  such  member or employee shall fully disclose any
  such interest or involvement to the corporation and to the authority  in
  such  form  and  manner  as the authority board shall prescribe and such
  member or employee shall  not  participate  in  any  evaluation  of,  or
  decision concerning, an application pursuant to section eighteen hundred
  twenty-four  of  this title regarding such project applicant or business
  enterprise.
    3.  The  corporation  shall  agree  to  be  bound  by  the  rules  and
  regulations  of  the  authority  relating  to  assisted projects and the
  operations of local development corporations, including the use  of  the
  loan  evaluation  criteria  and  methods  established  by  the authority
  pursuant to subdivision thirteen-b of section eighteen hundred  four  of
  this  title  and  the  criteria established by the authority pursuant to
  subdivision thirteen-c of section eighteen hundred four of  this  title,
  and  shall  submit  to examination of its books of account and corporate
  records by the authority at such times  as  the  authority  may  require
  during the term of any loan made to it by the authority.
    4.  The  corporation  shall  develop,  promote  and ensure that, where
  possible, minority groups which traditionally have  been  disadvantaged,
  and  women,  are afforded equal opportunity for loans from the authority
  through the  corporation  and  for  contracts  in  connection  with  the
  construction  of  the  projects  financed  by  loans  from the authority
  through the corporation; provided, however,  that  the  corporation  may
  request that the authority implement the provisions of this subdivision.